On January 8 police in Shenzhen captured 18 members of an Internet identity theft gang. Police sources said the investigation covered hundreds of cases involving hundreds of victims, resulting in nearly 100 million yuan (US$13.7 million) in losses.
On November 15, 2007, a Hong Kong businessman surnamed Liu reported to Shenzhen police that a company claiming it could procure speed loans for him had instead stolen 1.7 million yuan from his bank account.
"A woman claiming to be an employee of Fuda Co. said that she could get me speed loans from the bank. I was then in great need of cash to keep my business running and believed what she told me," said Liu.
Liu deposited 1.7 million yuan into his own bank account as requested by the woman. "I was told that the deposit would serve as a proof of my financial ability to pay for bank loans." Later he was asked to register his bank details on the company's website so their staff could check his credit history. When the money disappeared, Liu contacted the police.
Police found out later that Liu was not the only victim of this scam. Over 100 people around the country had also been conned in this way as well with similar swindles.
The ring's tactics were very clever, causing residents to be easily fooled. The syndicate operated as a company, Fuda Co., offering interest-free or quick loans as bait. After winning the client's trust, the company would get their bank account numbers and passwords and promptly transfer money into their own bank accounts using fake IDs. The suspects also pretended to be employees of Citibank conducting market surveys by phone. Using this ruse they coaxed people into providing account numbers by offering tax rebates.
Police raided locations in Luohu and Longgang districts, Shenzhen, Dongguan in Guangdong Province and Yueyang City in Hunan Province in two separate sting operations Dec. 25 and Jan. 2, arresting 17 members of the ring. Another main suspect was arrested on January 8 in Shenzhen. The police also confiscated 509 bankcards, 93 U shields (electronic certificates for online banking) and 167 fake ID cards and travel permits to Hong Kong and Taiwan. Most syndicate members have been confirmed as Taiwan citizens.
The case is undergoing further investigation. Police on Wednesday asked residents to call 0755-8446-5569/8446-5500 to report any possible cases of fraud.
(China.org.cn by Wu Nanlan January 11, 2008)
